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Reliance Infra settles Rs 235 cr debt with Edelweiss and Rs 600 cr with LIC

Reliance Infrastructure has brought down its external debt liability to Rs 475 crore. The company's net worth now stands at approximately Rs 9,041 crore

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Reliance Infrastructure Ltd Photo: Company website

Vasudha Mukherjee New Delhi

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Reliance Infrastructure Ltd announced the settlement of Rs 235 crore in dues owed to Edelweiss Asset Reconstruction Company Ltd (Edelweiss), marking another significant development in the company’s debt resolution efforts. The announcement was made through an exchange filing on Wednesday, at the same time the company stated that it had also reached a Rs 600 crore settlement with Life Insurance Corporation of India (LIC).

Following these repayments, Reliance Infra’s external debt has been reduced to Rs 475 crore. Consequently, the company’s net worth now stands at approximately Rs 9,041 crore, reflecting a significant improvement in its financial position.

The filing detailed that Reliance Infrastructure has paid off its entire obligations related to the non-convertible debentures (NCDs) issued by the company to Edelweiss.
 

“Edelweiss does not hold any equity shares in the Company and is neither a related party nor part of the promoter group,” the company said. This settlement follows the company’s earlier disclosure on Tuesday, where it confirmed that a one-time settlement (OTS) had been agreed upon between the two parties.
 
In response to this news, Reliance Infrastructure’s share price saw more than 5 per cent surge during morning trades on Wednesday, reflecting investor optimism regarding the company's ongoing efforts to settle its debts.

Reliance Infra Rs 600 cr settlement with LIC

Reliance Infrastructure today also announced the completion of a Rs 600 crore OTS with LIC. As per a filing dated August 2, 2024, the settlement with LIC also pertained to obligations related to NCDs, further easing the company’s debt load.

Adani Electricity Mumbai and Adani Energy Solutions

In another major development, Reliance Infrastructure has resolved disputes with Adani Electricity Mumbai Limited (AEML) and Adani Energy Solutions Limited (AESL), formerly known as Adani Transmission Limited. Both companies agreed to withdraw arbitration claims against each other as part of the settlement reached on 17 September 2024.

This resolution follows a series of arbitration claims that had been ongoing between the parties. The settlement is expected to bring relief to both companies, allowing them to move forward without the burden of litigation.

On September 17, 2024, Reliance Infrastructure received confirmation from Invent Assets Securitisation and Reconstruction Private Limited (Invent ARC) that its fund-based outstanding is now zero. The lender has transferred certain charged securities to recover its dues, effectively closing the matter.

Shares of Reliance Infrastructure were trading at Rs 247.80 on the BSE at 10.40 am on Wednesday, up 5.16 per cent.


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First Published: Sep 18 2024 | 11:22 AM IST

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